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Huntsman Releases Q4 Numbers, Sees Improving Global Demand

22.02.2010 -

Texas-based chemical company Huntsman has reported Q4 revenues at $2,096 million, an increase of 2% compared to $2,048 million for the same period in 2008 and a decrease of 1% compared to $2,108 million for the Q3. Net income for the fourth quarter was $66 million, an 89% decline year-over-year, and $114 million for the full year, an 81.3% decline from 2008.

Q4 volumes increased 13% compared to the same period in 2008 and decreased 7% compared to the Q3 2009 consistent with historical seasonal patterns. Adjusted Ebitda for the Q4 of 2009 was $165 million compared to $51 million for the same period in 2008 and $200 million for the Q3 2009.

The company's Polyurethanes business posted higher sales volumes in Q4 2009 than in the same period in 2008, primarily due to higher sales volumes partially offset by lower average selling prices, Huntsman said in a statement. The company explained the increased Ebitda in the business was the result of higher margins and sales volumes as well as the negative effects in the 2008 period caused by the 2008 U.S. Gulf Coast storms.

In its Advanced Materials segment, Huntsman has reported lower Q4 2009 revenues due to lower sales volumes and lower average selling prices. Sales volumes decreased across all regions as a result of delayed effects from the worldwide economic slowdown, the company said. Ebitda was essentially unchanged as lower sales were offset by lower raw material and operating costs, and in Q4 2008 and 2009, the segment recorded restructuring and plant closing charges of nil and $1 million, respectively.

The company saw an increase in revenues in its Textile Effects segment in Q4, thanks largely in part to higher sales volumes and higher average selling prices. Sales volumes increased primarily due to higher demand for apparel, home and specialty textile products in Asia where the dyeing, printing and cotton knit businesses in China and the woven segment in Sri Lanka are experiencing a good market recovery. The increase in Ebitda was primarily due to higher margins resulting from lower operating and fixed costs as well as higher sales volumes. In Q4 2008 and 2009, the segment recorded restructuring and plant closing credits of $6 million and restructuring and plant closing charges of $21 million, respectively.

Huntsman said the decrease in revenues in its Performance Products segment in Q4 was due to lower average selling prices partially offset by higher sales volumes. The decrease in average selling prices was primarily due to lower raw material costs. Sales volumes increased primarily due to higher demand across most product groups. Ebitda decreased due to the effect of lower margins as selling prices decreased faster than raw materials costs, partially offset by higher sales volumes. In Q4 2008 and 2009, the segment recorded restructuring and plant closing charges of nil and $1 million, respectively.

The increase in Q4 revenues in the company's Pigments segment was driven by higher sales volumes. Sales volumes increased primarily due to greater demand in Europe and Asia. Average local currency selling prices decreased but were offset by the strength of the euro against the U.S. dollar, resulting in no change to average selling prices. In Q4 2008 and 2009, the segment recorded restructuring, impairment and plant closing charges of $6 million and $3 million, respectively.

Looking at all of 2009, the company's revenues were down to $7,763 million compared to $10,215 million for 2008. Adjusted Ebitda for 2009 was $511 million compared to $643 million for 2008.